by Paul on April 27, 2010
A company forwards you this letter which solicits you to buy a copy of your deed. In a twist of words, it appears that you need their service. You submit some monies and within a couple of weeks you get a copy of your deed.
Of course, my grandmother gets a copy of this letter and immediately calls me. Paul, you have to take a look at this paper, it looks like I have to pay these people. For whatever reason, my grandmother is not the only one that falls for this solicitation. I have had numerous clients and family members ask me the same thing.
I personally have received this notice from this company that in a round about way words their solicitation to entice you to get a copy of your deed. Obviously, I toss it along with my other junk mail. Is this a scam? To the extent that this company actually obtains your deed, it may not be a scam. But, let me ask you this, had you not received the letter, would you have thought about trying to get a copy of your deed? Can you trust that this company, which solicited you, will get your deed?
The fact that you have misplaced your original, recorded deed does not mean that someone can steal your house if the deed somehow falls into the wrong hands. The deed is recorded in the county clerk’s office (or register’s office) depending on the county. It is a public record, so you or anyone can obtain a copy of the deed by simply going down to the clerk or register’s office.
You may have a copy of the deed among your personal effects from your closing. I would be skeptical about purchasing a copy of my deed from a company that has solicited me. So, to that end, if your deed is lost, try locating the title company or attorney that closed your file. If a copy is not in their possession, you will be guided to the clerk or register’s office, which is where you should go anyway.
by Paul on April 20, 2010
The lender so far has asked the buyer to obtain all documents to support a loan and for the issuance of a mortgage commitment. The commitment states, among other things, that a satisfactory appraisal must be performed. So, this is not really a commitment, but, as a buyer, you are, nonetheless, excited. The appraisal is ordered and the home that you are purchasing (or that you are selling) is lower than the purchase price. What do you do?
An appraisal is a third-party opinion of the value of a property by a qualified person. It is a subjective determination, so it can be challenged. [click to continue…]
In New York, the seller is required to pay the transfer tax. The amount depends on the county which the property is located and in some counties, it depends on the type of property, i.e., vacant land, 1 family, or commercial property.
A special exception applies to transfer of new construction residential properties. It is the custom of the industry in new construction conveyances for the builder to pass the transfer tax payment to the purchaser. This is a contractual agreement that a purchaser agrees to pay the transfer tax (this is not imposed by any governmental authority). Some builders are adamant about transfer taxes being paid by the purchasers and are willing to let the purchasers walk away from the deal. Of course, I would ask if that were to happen what kind of market are we in – a buyer’s market or a seller’s market?
In New Jersey, it is typical that the seller pays the transfer tax even on new construction. In recent years, however, builders have attempted to pass the transfer tax onto the purchaser. Once again, this is contractual.
Even with a buyer’s market, I have seen builders stick to the contract to the detriment of losing a deal. I would most certainly ask under that scenario, why not build the transfer tax into the price.
Prior to the closing of title, the public records are searched to find all document which affect the ownership of title, including among others, mortgages, judgments, and covenants, easements and restrictions. A title search is conducted against the property using an abstract search. The abstract search serves as the basis for the creation of a title commitment. Simply put, a title commitment is a report which discloses the results of the abstract in a standard form. Additional searches are performed at the request of the customer as part of the title commitment, i.e., a lender and a purchaser in New York request a certificate of occupancy search. A title insurance policy is issued based upon the results of the title commitment.
Title insurance is a policy issued by an insurance company guaranteeing that the title to real property is free and clear of all issues and properly in the name of the owner and that the owner has the right to transfer or sell the property to a purchaser. In the event that a title issue rears itself, [click to continue…]
by Paul on March 30, 2010
This issue seems to come up, it seems, in every transaction. Typically, a seller made an improvement to the home without obtaining a new certificate of occupancy or proper permit. The most common examples are illegal decks, pools, extensions, finished basements, and converting garages into living space. A building inspector issues a violation when the building department is prompted to appear at the property for a routine inspection or receives an anonymous tip (usually from a disgruntled neighbor) that there are illegal structures on the property. [click to continue…]
by Paul on March 26, 2010
Effective December 31, 2005, the real property law is amended by adding a new Article 12-B, “The Home Inspection Professional Licensing Act.” In essence, any persons engaged in performing home inspections of residential buildings for compensation, must be licensed.
Article 12-B of the Real Property Law is entitled “Home Inspection Professional Licensing.” The section law as written is clear as to the licensing of individuals who provide home inspections for compensation. The relevant text of the article is as follows:
§ 444-d. License requirements for home inspectors [click to continue…]
by Paul on March 17, 2010
You signed a document a few years ago called a note and a mortgage. You thought that you could pay the lender. Everything was booming – you made good money at your job. Raises were good. All of a sudden there is a crash. The Dow Jones Industrial Average was down over 50% of its value.
Wall Street needed to please its investors, so there were layoffs and restructuring of companies. It seems as though everyone felt the belt tightening.
You lost your job, you lost income, your investments went sour, or whatever the reason, you cannot make a payment to the lender. [click to continue…]
by Paul on March 17, 2010
The scenario usually plays out like this: you sign the contract of sale (of course, you are ecstatic). You give the mortgage broker or loan officer everything he/she requests, i.e., bank statements, credit report, tax returns, pay stubs, letters of explanation, etc. Suddenly, there is a stop in the process: the appraisal falls short of the contract price; you have insufficient income; [click to continue…]
by Paul on March 14, 2010
On March 1, 2002, the New York legislature enacted the Property Condition Disclosure Act. In essence, the legislature found a compromise to the growing pressure for a seller to disclose defect within the knowledge of the seller and the common law rule of “buyer beware”. Under the common law rule, a seller is not obligated to disclose any defects relating to the property.
Under the new law, at the option of the seller, [click to continue…]
Finally, you found a house you really like. Preliminarily, everything looks fine with the house. Do I really need to pay an extra fee to someone to evaluate my home?
A home inspector is an independent, qualified, licensed individual who evaluates or comments about defects or areas of concerns for the structural components and mechanical systems for the home you are about to purchase.
A home inspection is a useful informational tool that will permit you to make an informed decision about purchasing your home. . A home inspection is the last chance you have to negotiate your contract price or request repairs of the seller. [click to continue…]